>> from bloomberg world headquarters in new york, i'm mark crumpton. this is "bottom line," the intersection of business and economics with a main street it. we begin tonight with the death of a legend -- nelson mandela. he was 95. lost itstion has greatest son. our people have lost a father. although we knew that this day diminishe, nothing can

our sense of the profound and .nduring loss >> of mandela served for five years as the first black resident of south africa after the african national congress artie help end apartheid in 1994. guy johnson has more on the mandela legacy. firstree man takes his steps into a new south africa. >> from prisoner to president, his 1990 release from jail signaling the end of the racist policy of apartheid. he would go on to become the country's first truly democratically elected leader. >> i do hereby promise to be

faithful to the republic of south africa. wasorn to a local chief, he one of 13 children and the first member of his family to attend school. he began opposing the white minority a policy of apartheid, laws that segregated society and made colored south africans second-class citizens. byst, mandela was moved gandhi. more aggressive, so did he. as the head of the armed wing of led ational congress, he violent sabotage attacks and was arrested and tried in 1962. he would spend 27 years in jail that he was never forgotten. eventually, international and to sayl pressure led apartheid would be dismantled

down the mandela would walk free. rather than seek richer view hising, he reached out to former oppressors trying to heal a divided nation. 1990 three, they shared the nobel peace prize. for fellow south africans and we want them to is crucial toh the contribution they have made towards a democratic party. >> he voted for the first time in 1994 with millions of his fellow black south africans. he became a statesman, an international icon. for south africa, he was a symbol of the country it wanted to be despite struggles with poverty, racism, and aids. free of any idea of any reasons or recrimination.

>> many will remember him celebrating south africa's place on the world stage as they hosted the 2010 soccer world cup. a great life. africa loves him. africansace in south hearts reading, thank you for our dignity. us on the phone from johannesburg, france from bloomberg news. thank you for your time. you tried to get as close to the mandela home as possible. describe the scene now. we seem to have lost franz live from johannesburg. we will try to get back to him as soon as we can. president obama praising his achievements saying he served as an example for himself and many others. and nifty his fierce and unbending will do sacrifice

his own freedom for the freedom of others, he transformed south africa and moved all of us. his journey from a resin or to a the promisebodied that human beings and countries can change for the better. his commitment to transfer power and reconcile with those who jailed him set an example that all humanity should aspire to. >> bloomberg's kathleen hunter joins us from washington with more reaction. what are we hearing from the white house at this hour? >> from the speech we saw from president obama, the comments he made, one of the most striking was when the president talked about his own influence, the influence it had on his own life from nelson mandela specifically hisrencing the fact that first political act, his first

act of political activism dating back to 1981 was when he helped lead and make a speech at an anti-apartheid rally at occidental college. 19-year-old barack obama with the beginnings and the roots of his political career being inspired by nelson mandela and it talks about the responsibility he feels going forward to emulate and live up to the example that he set. >> who are we hearing from him and he'll? what did they have to say? aboutce the news broke his death, there has been a real out touring of statements from every possible corner of capitol hill to imagine everyone from republicans, democrats, ted , dickmitch mcconnell durbin, nancy pelosi. regardless of political ideology , there is a real outpouring of support and memories in honor of nelson mandela and his contributions. a lot of people talking about

what he stood for in terms of ease and justice, the examples and he set in his own life calling on their colleagues and themselves as politicians to emulate that example. >> kathleen hunter from washington emma we are asking you to stand by because it seems we have connected with our s, injure, franz wile hotness burg. we know you try to get as close to the home as possible. describe the scene. >> i'm about 50 yards from the entrance to his house which is as close as we can get. there are hundreds if not thousands of people who have .athered here it's just before midnight local and since then people have been trickling in. initially it was so quiet and mood has picked

up. you can probably hear the resurgent singing in the background and a lot of people singing of the struggles. one man said it is our culture to celebrate and now is the time to celebrate his life. the first candles, they have all arrived. there is a spotlight in the square where they are being placed. there is a helicopter circling above may. we are just waiting to find out what the details are regarding the funeral. we don't know exactly when that will be. we do know that all flags will be at half mast. the death,announced

president jacob zuma saying, "we have lost our greatest son." our people have lost a father. talk to us about how south africans did see nelson mandela as a father figure. >> absolutely. a lot of south africans almost see him as a personal father. they feel like they have a personal relationship because he was such a warm and open human being. he was able to connect to people way.very personal that has created that fatherly figure. beyond that, there's a lot of trepidation as to what will happen in south africa now that he's not around. whether his biggest contribution

possibly was his ability to unite nations and at the end of apartheid when many people thought that the widespread , there were a lot of people concerned with whether that unity will remain. the former president has also discussed with the media and he himself said that now is the time for us to think about what kind of a democratic south africa and an egalitarian south africa we want to be. >> joining us live from near the mandela home in johannesburg. continuing our coverage. the former president of south africa, nelson mandela, has passed. he was 95 years old. our coverage continues in just a moment. ♪

in 2010, bloomberg businessweek featured a cover story on how far south africa has come from apartheid. and hels wrote the story joins me now in studio. thanks for your time tonight. in the article, you wrote your first reporting trip to south africa was in 1992, two years before mandela was released from -- twoand two years years after he was released from ison and two years before he became president. what was it like? >> there is a lot of serious money betting this was going to turn into a race war. the reason why it didn't is due to nelson mandela. ofhas this remarkable way diffusing all of these terrible situations. he charmed a lot of people but he is also very hardheaded about

things like the economy. when he got into office, they had been really sapped by sanctions for all these years and could have gone either way. look at zimbabwe next door. interesting because you mentioned the sanctions risk. there was a divide in this country about the sanctions. reagan was slow to act and there was a lot of pressure or members of the congressional black caucus and other circles as they have been noting tonight, lots of concerts in support of mr. mandela, lots of concerts in support of those who said that we should not have any dealings with south africa as long as apartheid was still in place. >> the people for sanctions were on the right side of history because it really did weaken the regime and probably brought them to the bargaining table much quicker. >> in your article, you noted

south africa's economic and clinical aspects were intertwined. how so? how did he help to narrow that defined? had growth rates under 1% during the entire apartheid regime. from the time he was a like did until 2008 they were clipping along. that is an astonishing miracle and away. he did that by saying we want free markets. we will not nationalize the minds. we want everyone to be able to sort of compete in our economic system and to take heart. and theyted jobs opened up the labor force. they had a very strong affirmative action program which has worked very well there. they managed to get a lot of people. >> let's talk a little bit about his economic legacy. our business week colleague charles kenny wrote today saying

nearly as consequential as his moral example was his skill in managing the transition from apartheid without widespread orlence, repression, collapse. you talk about his charm but he could also be a little bit stubborn as people close to him have said. how was he able to remake south africa specifically into one and not integrative urgent group economy? >> he reached out to the business community and said, i need your help. this is our right together but you have to help me. i was there reporting on the he was industry and leaning on them all the time to finally offer banking services to the people in townships. uptheir credit they came with very creative ways to serve them in south africa and make money at the same time. providing these basic

economic services to people who had never had them before, again, you start to bring everyone in the economy and that was the key. it was not like crony capitalism. everyone was trying to pull their own weight. >> can we ask you to stick around? we may want to talk later in the broadcast on the developing story today, the death of former south african president nelson mandela. more on that story in just a few but coming up, investors are on the edge of their seats in anticipation of a fed interest rate hike. we sit down with a market strategist who's optimistic about what the future holds. "autumn line" continues in just "autumn line" continues in just a moment. ♪

>> stocks continued to fluctuate as they look for clues on the

timing of cuts to federal reserve stimulus. so far this year, the s&p 500 over 25%700 86, up since january. oppenheimer chief strategist says we should look for things to get even better and he joins me now in studio. welcome to "bottom line." your year-end target, 1000 812. why are you so optimistic? >> we think it's realistic. we think we are in the process of seeing quantitative easing as effectively primed in the well of the u.s. economy. we think structural issues are being dealt with, albeit not at the most quick way possible but we are seeing progression of fundamentals getting better. we have automobiles, housing, and the energy industry effectively providing great contribution to the economy. we think it flows into earnings. >> let's look at some of the

factors that you just alluded to. they moved the markets higher last month and let's begin of talk of when the fed might begin winding down the monthly asset purchases. how much will the release of the november jobs report tomorrow factor into the fed's decision? >> it will certainly have a considerable weight, but i don't think it will sway as much as some might think. >> why not? willat will sway the fed likely be a slowing in auto sales, a buildup in inventory and also the fact that mortgage applications have gone down again this week. a bettergh we had initial jobless claims numbers, it's a mixed bag. >> fed officials have said that tapering would again if there were consistent signs of economic growth but what if tapering actually has the opposite effect? they see the removal of the

stimulus as removing one of the pillars that has been holding up the u.s. economy and keeping it from spiraling out of control. >> when i look at it, what we the tapering when begins, it will actually give a considerable relief to the market and we think this fed has been remarkably accurate and how it has dealt with the economy providing liquidity when necessary. we were the only strategists on the street who said they would not taper on september 18 and we are beginning to think they may not even taper in march as a result of the fact that the bond market appears to be once again preempt in a fed taper. >> pimco's bill gross on with myg today colleagues erik schatzker and stephanie ruhle said that all sat -- all assets have been artificially mispriced. he said what they're going to do in terms of transition is simply reduced quantitative easing to

the point that by the end of 2014, they eliminated if they can, if the economy responds. what's your reaction? >> i would agree with bill gross on that. with't necessarily agree him on a day-to-day basis but i must say that they will be very cautious before they eliminate a process of quantitative easing. the tapering will be as needed and the reaction of the bond market or the anticipation of tapering by the bond market would seem to take away the need for the fed taper sooner and rather to taper later. >> what has this been doing to the markets? we have been talking about tapering for the last four or five months now. >> several things. for the equity market, substantially a good thing overall. for the bond market, for investors in the bond market, it's given them an opportunity to get out of the way, check durations in their portfolio in

anticipation of a normalization of interest rates and that will be a process that will come into the system as the fed begins to taper. central bankan president mario draghi said today financial bank development in low domestic man may hurt the euro area economy. how about the headwinds from europe? >> the thing about europe is that they are beginning to remove themselves from the recession. data hashe sentiment been much more positive than we've seen over the last few years and they are behind us in the process. going on int what's washington? there is still the uncertainty, a budget deal, will this be a problem? >> the market has anticipated that there could be a problem in january or february and that is where we are seeing weakness. studio,ng us here in

john, thank you. when we return, continuing coverage of the death of nelson mandela. stay with us. ♪

>> welcome back to the second half-hour of "bottom line" on bloomberg television. i'm mark crumpton. let's see where the markets closed thursday, december 5, two thousand 13. stocks declining a fifth day sending the s&p 500 to a two week low. improving economic data showing that the fed could curb bond purchases sooner than exhausted -- sooner than expected. the broad market down. the dow jones was off by 60 it points, 0.4% -- 68 points. .he nasdaq down four points

recapping the top story, former south african president nelson mandela has died at the age of 95. he was one of the most beloved statesman and a colossus of the 20th century. 27 years inng prison, he negotiated an end to apartheid. the current president, jacob zuma, announced his death at a press conference earlier. nation has lost its greatest son. father.le have lost a although we knew that this day diminishe, nothing can our sense of the profound and enduring loss.

>> at the white house tonight, president obama said the world is not likely to see the likes of nelson mandela again. the moste lost one of influential, courageous, and profoundly good human beings that any of us will share time with on this earth. he no longer belongs to us. he belongs to the ages. >> former president george w. bush released a statement saying president mandela was one of the great forces for freedom and equality in our time. he bore his burden with dignity and grace and our world is better off because of his example. this good man will be missed but his contributions will live on forever. many people taking to twitter to express condolences. russell simmons saying he's one of the greatest teacher the world has ever known. former president bill clinton simply tweeting, i will never friend, madiba.

wife andvived by his three daughters. ken is back with us in writing the cover story on how far south africa had come in apartheid from a piece in 2010. thanks for coming back. president mandela was a big opponent of educational opportunity. it expanded during his time in office. how did that translate into job creation and economic growth? >> for the first time, one of the issues with apartheid is that there was an entire generation of young people who skipped any kind of education. they came in and totally changed that system and now you have blacks college-educated since the end of apartheid who have joined the workforce and have become productive members of the economy. it's been a huge leap forward.

>> there was criticism of mr. mandela from black south because the change was seismic in the country and they expect it seismic change to mean immediate change but that wasn't the case, was it? >> it's a tough proposition. the unemployment rate in 1992 was 40%. expectation was that this miracle had happened and overnight things would improve. things did improve and have improved but they certainly don't happen overnight. >> how has south africa's economy become a source of growth for its neighbors? >> they're lucky to have abundant natural resources. they have mining, gold, coal, platinum. they have a very bountiful agricultural segment which is a large part.

they export now. economy to be the economy. he opened up the markets. he adopted the free-market mantra. where mcgaughor bay was confiscating the farms e was confiscating farms, he wanted everyone to stay in the game. >> read a south africa goalpost nelson mandela? >> there is a legitimate question as to having lost the man who was there true moral leader. >> this cannot be understated. this is literally like the heart has been ripped out of south africans tonight. >> this gives time for them to build social capital there, this whole idea that they now realize the vast majority of south africans realize what they have and realize the upside of what they have.

because mandela gave them such a long time to contemplate that, i remain an optimist about this. >> i cannot let you go without telling people what you told me during commercial break when you are leaving this up before. you did not meet the man but you .lso almost interviewed him that has to be a source of hurt for you. >> he had to go up to some meeting and i got canceled. i was brokenhearted, even more so now since his passing. >> he was a giant. >> he was an inspiration for so many people there. great.what's really black, white, the old apartheid a guys, everyone claimed him as sort of a father figure. >> ken wills joining us on set with his recollections of south africa from 20 years before and during the days before and after

nelson mandela became president. thanks for coming on tonight. coming up, on unlikely trio, google, linkedin, and white castle? washington cracking down on patent trolls. that story is next. ♪

>> be sure to check out the latest edition of bloomberg businessweek and hit snooze fans and your tablet today. you can read it on the go with our new is this week cap. join us with a special are liveg west " as we from ebay headquarters in san jose with exclusive interviews with ebay ceo john donahoe and the paypal president. our inside look will show you how ebay has evolved from an online auction house into a tech giant surviving and thriving after the.com bubble. ."n't miss "inside ebay

google and tech companies got a big win in congress today. house of representatives passing a measure aimed at reducing the time tech companies spend fighting patent lawsuits. megan hughes has more on what this means. say this may make it more expensive for legitimate patent holders to defend their inventions but some companies like google, linkedin, and even some restaurants like white castle are hoping this will mean fromf from the lawsuits patent trolls. >> the standard is no reasonable basis in law and fact that universities and innovators don't bring those kinds of suits. stop the patent trolls. >> it requires patent owners to require information to describe the infringement and it limits the amount of pretrial information. a lot of times, they ask for huge amounts of busy work. losingourts force the

party to pay the winners legal fees. this is a controversial part of it. the government reporting that these trolls foul 19% of all patent lawsuits from 2007-2011 and opponent express concern about the other 80% losing their legal rights. >> we are posing a burden on small innovators because they will fear that they will lose a lawsuit and end up paying the peoplecosts of who they litigate against even though their claim was legitimate. >> the bill passed with bipartisan support and the backing of the white house and the issue now moves to the senate where he hearing is scheduled for later this month.

>> coming up, looking for work is stressful enough. now americans getting emergency unemployment benefits might soon be without assistance. what's at stake if congress refuses to extend the benefits? why will sit down with the former chief of staff the vice president biden to get a washington insider's point of view next. ♪

>> bankrupt company, bankrupt city. what happened the? >> we lost our way. >> this does not look like my old man's cadillac. >> where the fastest-growing car brand in the world. >> a 111-year-old brand, doesn't have what it take you? >> the november employment

report comes out friday morning and while investors look at the numbers more than one million americans are watching congress to pass an extension of emergency unemployment benefits. they are set to expire december 28. democratic strategist robert hoopes has been an active member in electoral politics are more than 20 years working in joe biden's senate office and later as a member of the obama-biden transition team and is currently the president of a bipartisan public affairs company. thanks for coming on tonight. we have to start with the breaking news, your reaction to the death of nelson mandela. >> at this moment in washington, we are talking a lot about leadership. you look at his qualities as a leader, perseverance, determination, the gratitude, the forgiveness. these are attributes that are so compelling and to have them reside in one man over 95 years

is just extraordinary. absolutely extraordinary. >> why are they missing in present-day washington? >> boy. it's an unfair mark to compare anyone to nelson. he is just in such a different league. one can certainly help as world leaders travel for the funeral that they have time to reflect and think about his qualities and what made him so remarkable over such a long time. >> let's talk about present day. the obama administration warning about the lapse in unemployment benefits saying it may cost as many as 240,000 jobs but there's another side to the argument. should benefits and? when should they end? they are capped at 73 weeks in most states average fewer than that. >> they kick in after state benefits have run out and it was a program started under bush and continued under obama. it went from 99 weeks to 73.

i don't know what the right number is but i do know that the 1.3 million americans who are getting unemployment benefits and having the stop on the 28th is bad politics and bad policy. >> today, john boehner told reporters at the presidents real focus ought to be on creating a better environment for our economy and creating more jobs for the american people. those jobs were there, shovel ready jobs that president obama spoke of often, would we be having this discussion about benefits? >> the unemployment rate has gone down from 2000 eight. whether there are enough or not, that is what politicians can debate around the edges. peoplelion, these are who come from all walks of life, white-collar, blue-collar and they need this assistance and what is also happening is some brinksmanship and public negotiating going on. i think they are close to a

deal. it will come in higher than the sequestration rates will be hard for a lot of the republicans in the house for swallow. -- to swallow. if they can get some progress on unemployment it means they will pick up some democratic votes and you may see a budget deal go through with the minority and majority. >> why are some of these americans, for lack of better phrase, being used as a political piñata? why are they being stigmatized with the words, living off the udall, not wanting to get a job? that's not political brinksmanship. that's just mean. >> anyone who wants to work can. it's not just a job -- it's dignity have a quality of life. people who want to work should be able to get a job. >> 24 million have received the benefit since 2008. what's been the economic benefit of this in

stimulating economic growth and lowering the unemployment rate? >> no doubt they go right into the economy. people absorb them and spend them right away. the congressional study that just came out said cutting the benefits would result in the loss of 240,000 jobs. around thehe debates country today involves the living wage. fast food workers were demonstrating they would like $15 per hour minimum wage and he was there talking about the .isparity how is the politics hurting our people? talk about united states and where it is in terms of lifting people into the middle class. >> this is the epicenter of what was the mayor's race with build the blowsy oh -- bill deblasio talking about affluent suburbs

around manhattan and those who .re income constrained but work they cannot live in the communities where they work. they have to commute or drive- in. you will see a real focus from the president and democrats on this question of a livable wage. >> will democrats and comelicans be able to together? >> i hope so. we make our bed and then we vote. we wait and see what happens on a budget deal before they'll be for the holiday break and see what kind of pressure there is to get this thing done. the last thing they want is another shutdown. >> robert hoopes, president of a bipartisan public affairs company joining us in studio. coming up, our coverage of the life and death of nelson mandela continues. more heartfelt tributes from the people who knew him and his legacy. stay with us. ♪

>> let's get to the "bottom line" on what's going on friday. su keenan has a look at friday. the november jobs report at 8:30 a.m. and a survey of economists looking for a rise of 185,000 and an unemployment rate dropping down to seven point two percent. personal income and spending for october at 8:30 a.m. and consumer credit data coming out at 3:00 p.m. remember the kerfuffle over jack hows signature, we will see rosie rios signs her name. story tomorrow,

inside ebay. exclusive interviews from john donahoe and the president of paypal. we will show you how ebay evolved from an online auction house into a tech giant. we will break down the numbers for hundreds of online purposes. can hughes help launch a kobe bryant comeback? one of the largest mining companies in the world is getting a makeover. rally in metal prices going to allow? we will show you how they are moving on. elbow pads, get them ready. roller derby is back. one ceo whose competitive passion extends to this competitive sport. from washington tonight, president obama ordering all in. flags at half mast

effect until december 9. as we leave you tonight, reaction pouring in from around the world to his death from south africa to london to washington. africans, ourh beloved nelson mandela, the founding president of our democratic nation, has departed. >> nelson mandela was a child for justice and for human inspiration. many around the world were greatly influenced by his selfless struggle for human dignity, equality. >> your greatest son has moved millions and i believe his inspiration for the future will powerful asd as extraordinary things he achieved in his or marketable life. wife, who was just

wonderful with him, she would carry on his good work. she is bright and intelligent. she's an extraordinary woman. >> for now, let us pause and give thanks for the fact that nelson mandela lived. i man who took history in his the ark of the whole universe towards justice. may god bless his memory and keep him in peace. >> president obama reacting tonight to the death of nelson mandela at the age of 95. shakespeare said it best. his life was gentle and the elements so mixed in him that nature might stand up and say to all the world -- this was a man. get the latest headlines at the top of the hour on bloomberg radio and streaming on your tablet and on bloomberg.com. that does it for the addition of "bottom line up.

oh i'm mark crumpton reporting from new york. thanks for joining us. we will see you tomorrow. ♪